To cut your picture into soft waves, drop your photo on your page, go to "Cut & Fill>Shapes>Wave" under the Geometric category. Stretch the shape to match the width of the photo and the depth to match however many waves you would like to cut out of the photo. In this case I cut out 4 waves.
When cutting, start with "Format>Heavy shadow" on the photo. This will allow you to see where you have made your cuts and therefore, making them more accurate. For the photo in the lower left corner, use "Format>Filters>Soften edge" quite heavily. You can also intensify this look by dropping the opacity and adding a soft edge frame from the Format Photos ribbon. I added a grunge overlay, stars overlay, and then cut out 2 stars and sampled the color in the stars overlay to match.
